Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
Domestic equities witnessed some pressure amid weak global cues, mixed November auto sales number and investor’s cautious approach ahead of release of US monthly jobs data. Nifty ended its eight-day streak after witnessing rally of 4%. The index finally close with loss of 116 points (-0.6%) at 18696 levels.
Broader market however outperformed and were up +0.6%. Realty and Metals continued to see traction. Niche sectors likely defence, pipes and beverage companies were in flavour on back of news flows.
After rallying 4%, market seems to have taken a pause and is likely to consolidate for next few days. However, overall trend remains positive with Nifty headed towards 19K zones.
Next week, markets will take cues from RBI’s policy meeting and we expect them to tone down their stance given positive macro data and dovish commentary from Jerome Powell. Also investors would keenly watch for outcome of Gujarat state election that is due next week.
Result in favour of BJP would add to continued momentum as it would mean stability and set the stage for 2024 election. Other key data lined up to release next week are OPEC meeting, US & India Service PMI, Europe Q3 GDP and US Jobless claim data.
Rupak De, Senior Technical Analyst at LKP Securities:
Bears remained at the helm throughout the day as the benchmark index couldn't pare the morning loss. However, the correction was limited to 0.62% by the end of the session.
Over the near term, sentiment is likely to remain sideways, with 18,500-18,800 to be the crucial range. A decisive breakout from either band may induce a clean directional move in the market.
Amol Athawale, Deputy Vice-President - Technical Research, Kotak Securities:
As the market was in an overbought zone after the recent upsurge, correction was due for sometime and hence investors booked profit in a trading session marked by weak Asian and European cues.
The recent GDP numbers and GST collections came in line with expectations, but global newsflow will continue to dictate the market trend going ahead.
The two immediate triggers - RBI's credit policy next week and the US Fed meeting in mid December on rate front would determine the investors' mood in the near term
Deepak Jasani, Head of Retail Research, HDFC Securities:
Nifty snapped an 8-day rally on Dec 02 and closed 0.62% or 116.4 points lower at 18696.1. However, it did not close at the intraday low.
Global stocks were cautious on Friday, after recent sharp gains as traders awaited the monthly US jobs report for clues on the Federal Reserve’s next policy steps and worries about economic growth resurfaced in Europe.
Gains over the past few days are being digested and markets are looking at fresh data points to decide the further direction.
Realty stocks performed well in India due to a broker upgrade. Auto stocks came under profit taking post the monthly sales numbers. Over the week, Nifty gained 0.99%.
Nifty could face resistance in the 18,758-18,888 band while 18,462-18,529 band could offer support in the near term.
Ajit Mishra, VP - Technical Research, Religare Broking
Markets witnessed profit-taking and lost over half a percent, taking a breather after the recent surge. After the flat start, the Nifty index gradually inched lower in the first half, followed by range-bound movement till the end. Consequently, the Nifty index settled at 18,695; down by 0.62%.
Meanwhile, sectoral pack traded mixed wherein realty and metal counters were in the limelight while auto and energy traded subdued. Amid all, the buoyancy on the broader front kept the traders busy till the end.
Indications are in the favour of further consolidation in the index but the tone would remain positive till Nifty upholds 18,300. And, since all the sectors are participating in the move, traders should utilize this phase to add quality names on dips.
Vinod Nair, Head of Research at Geojit Financial Services:
The rally in the domestic market was halted by negative cues from global counterparts and broad-based profit booking in large caps.
The correction in the market was led by auto stocks as the sales data came in lower than expected due to weaker exports and sequential de-stocking.
Declining manufacturing activity in the US is proof that the central bank’s policy tightening has started to show results, which in turn will encourage the Fed to keep rate hikes at bay.
S Ranganathan, Head of Research at LKP securities:
With IT stocks supporting the Bulls well this week, today we witnessed price action across select themes in the Small & Midcap space.
On a day when Auto stocks dragged indices down post the monthly numbers, the street focused attention in the broader markets to segments like Tyres, Pipes & Sugar buoyed by positive newsflow as many stocks were keenly sought after in these pockets.
Rupee Close:
Indian rupee closed lower at 81.31 per dollar against previous close of 81.21.
Market Close:
Indian benchmark indices broke eight-day gaining momentum and ended lower with Nifty around 18,700.
At Close, the Sensex was down 415.69 points or 0.66% at 62,868.50, and the Nifty was down 116.40 points or 0.62% at 18,696.10. About 1995 shares have advanced, 1376 shares declined, and 137 shares are unchanged.
Eicher Motors, M&M, Tata Consumer Products, HUL and Hero MotoCorp were among the top Nifty losers. The gainers were Apollo Hospitals, Grasim Industries, Tech Mahindra, Tata Steel and Dr Reddy’s Laboratories.
On the sectoral front, except realty and metal, all other sectoral indices are trading in the red.
The BSE midcap and smallcap index rose 0.7-0.8 percent.
CLSA keeps 'Buy' rating on Paytm, target Rs 650 per share
-Buy call, target Rs 650 per share
-Management explained business model & gave insights on its payments & lending business
-Company expects to become free cash flow positive in the next 12-18 months
-In-line with our view of cash burn ending in the next 4-6 quarters
CLSA maintains 'Buy' call on Bandhan Bank, target Rs 300 per share
-Buy call, target Rs 300 per share
-Over medium-term its strategy remains diversification to non-MFI categories
-Company to increase exposure to states beyond West Bengal and Assam within MFI
-Bank lacked management talent/depth to scale businesses beyond MFIs
-It was encouraging to see new senior hires from top private sectors
-In the near-term, normalisation in MFI will be key
Atul Auto shares gain as sales grow 68% YoY in November
Atul Auto share price gained 2 percent as company sold 2,253 units in November 2022, a growth of 67.6% over 1,344 units sold in same month last year.
The financial year-to-date growth was 62% at 15,914 units sold November 2022 YoY.
Morgan Stanley maintains Equal-weight call on Paytm
-Equal-weight call, target Rs 695 per share
-Management confident of achieving adjusted EBITDA break-even target by September 2023
-Doesn’t see any significant risk to its payment margin w.r.t regulations
-Net payment margin should remain broadly steady
-Reduction in interchange/MDR won’t affect net payment margin
-Guided for significant growth traction w.r.t lending
Uniparts India IPO subscribed 16.1 times on final day of offer
The initial public offering (IPO) of engineering systems and solutions provider Uniparts India was subscribed 16.1 times on December 2, final day of bidding. The public issue received bids for 16.31 crore equity shares against 1.01 crore shares on the offer.
The portion reserved for the retail investors got subscribed 3.85 times, while the category reserved for high networth individuals (HNIs) received 14.62 times subscription. The quota reserved for qualified institutional buyers was subscribed 38.64 times.
The company planning to mobilise Rs 835.6 crore via initial public offering which is entirely an offer for sale by promoters and investors. The price band for the offer is Rs 548-577 per share.
Market at 3 PM
Benchmark indices erased some of the intraday losses but still trading lower with around 18700.
The Sensex was down 432.91 points or 0.68% at 62851.28, and the Nifty was down 116.50 points or 0.62% at 18696. About 1877 shares have advanced, 1346 shares declined, and 116 shares are unchanged.
Gainers and losers on the BSE Sensex:
Here are the stocks that are locked on the lower circuit or have only sellers; Click To View More
Here are the stocks that are locked on the upper circuit or have only buyers; Click To View More
Yes Bank shares gain 2%
Private sector lender Yes Bank said on December 1 that its planned stake sale to Carlyle Group and Advent International has received conditional approval from the Reserve Bank of India.
Morgan Stanley keeps 'Underweight' rating on MCX India, target Rs 1,120
-Underweight call, target Rs 1,120 per share
-Average daily traded value (ADTV) a key driver of MCX's profits & share price
-In November 2022, ADTV was up approximately 19 percent MoM to Rs 470 billion
-MCX stock was up 2 percent during the month, while the Sensex was up 4 percent
Multi Commodity Exchange of India was quoting at Rs 1,565.25, down Rs 7.50, or 0.48 percent on the BSE.
One 97 Communications (Paytm) shares in focus
Shares of One 97 Communications, the operator of Paytm, inched higher on December 2 after the company sounded optimistic on its growth prospects and reasserted its guidance on turning profitable at an operating level next year.
“Management stated that the journey to attain operating profitability (EBITDA before ESOP cost) via consistent margin improvement has exceeded its expectations in the past few quarters,” ICICI Securities, which attended the company’s analyst day meet, said in a note.
BSE metal index added 0.7 percent led by the APL Apollo, SAIL, Vedanta
European Markets Updates
Amara Raja Batteries to invest Rs 9,500 crore in Telangana over the next 10 years
Amara Raja Batteries signed a memorandum of understanding (MoU) with the Government of Telangana to setup state-of-the-art research and manufacturing facilities for lithium-ion battery-making in Mahbubnagar district, Telangana. Over the next 10 years, the company intends to invest over Rs 9500 crore, after necessary approvals. The stock was trading atRs 657.35, up Rs 11.60, or 1.80 percent on BSE. It has touched an intraday high of Rs 658.10 and an intraday low of Rs 645.25.
Uniparts India IPO updates
The initial public offering (IPO) of engineering systems and solutions provider Uniparts India was subscribed 9 times on December 2, final day of bidding. The public issue received bids for 9.1 crore equity shares against 1.01 crore shares on the offer.
The portion reserved for the retail investors got subscribed 3.32 times, while the category reserved for high networth individuals (HNIs) received 10.49 times subscription. The quota reserved for qualified institutional buyers was subscribed 17.77 times.
HDFC Bank board approves issuance of NCDs up to Rs 15,000 crore on private placement basis
The bank has issued and allotted on a private placement basis 7.86 percent unsecured, subordinated, fully paid-up, non-convertible, Basel III compliant Tier 2 bonds for augmenting Tier 2 capital and overall capital of the Bank for strengthening its capital adequacy and for enhancing its long-term resources amounting to Rs 15000 crore (15000 bonds of face value Rs 1,00,00,000 each), the bank said in an exchange filing. HDFC Bank was trading at Rs 1,610, down Rs 9.15, or 0.57 percent on BSE. It has touched an intraday high of Rs 1,616.75 and an intraday low of Rs 1,606.20.
Ashoka Buildcon bags project worth Rs 1,668.5 crore from NHAI
Maruti Suzuki to hike prices across models w.e.f January 2023
Market update at 2 PM: Sensex is down 466.72 points or 0.74% at 62817.47, and the Nifty fell 130 points or 0.69% at 18682.50.
Chris Wood reduces exposure in Bajaj Finance, rotates real estate bets
Christopher Wood, global head of equity strategy at Jefferies, continues to bet big on India’s hot property market. The Greed & Fear team has observed that rising interest rates is not stalling recovery in the real estate space.
On that basis, he has decided to make changes to the India exposure in Asia ex-Japan and India long-only portfolios.
In his Asia ex-Japan long-only portfolio, Godrej Properties has been removed and replaced by Macrotech Developers with 6 percent weighting, while the investment in Bajaj Finance has been reduced by one percentage point. Click To Read More
BSE Realty index added 0.6 percent led by the Macrotech Developers, Sobha, Prestige Estate:
Punjab National Bank raises Rs 4,000 crore via bonds
Punjab National Bank has raised Rs 4,000 crore by issuing bonds at a coupon of 7.89% per annum on a private placement basis. The bank issued bonds to 18 investors.
Punjab National Bank was quoting at Rs 53.70, up Rs 0.50, or 0.94 percent on the BSE.
Macritchie Investments Pte Limited, Dunearn Investments (Mauritius) Pte Ltd and Camas Investments Pte. Limited have increased their holding in Zomato from 4.87 percent to 6.01 percent
Bajaj Hindusthan Sugar paid entire overdues towards term loan installments (till September 2022), term loan interests (till November 2022) and Optionally Convertible Debentures (OCD) coupon (payable for FY 2022) to all the lenders.
Accordingly there are no overdues in our account and the account is fully regular with all the lenders as on date, company said.
CLSA View On Oil & Gas
-Cut in windfall tax on domestic crude oil < USD 10/bbl fall in brent during last fortnight
-This still kept post-windfall tax crude realisation at USD 78/bbl
-Realisation near upper-end of the range of USD 74-79/bbl of the last few resets
-Should raise investor confidence on ONGC/Oil India getting USD 75-80/bbl realisation
-ONCG/oil stock prices imply a $45-50/bbl realisation
MIC Electronics in focus
MIC Electronics has been awarded the tender for replacement & provision of coach guidance system at Vikramgarh, Suwasra and Jhalwar city station of Kota division, western central railway by the Kota Division - Signaling and Telecommunication, office of the DRM, WCR, Kota, Rajasthan.
The value of the said tender is Rs 1,30,93,439.54.
MIC Electronics was quoting at Rs 11.10, down Rs 0.18, or 1.60 percent on the BSE.
Nifty Bank index fell 0.5 percent dragged by the ICICI Bank, Axis Bank, HDFC Bank
SJVN arm signs MoU with Grid Corporation of Odisha
SJVN's subsidiary SJVN Green Energy has signed a Memorandum of Understanding with Grid Corporation of Odisha for developing 1,000 MW hydro electric projects and 2,000 MW solar power projects in Odisha by incorporating a joint venture company.
The development of these projects will attract an investment of Rs 20,000 crore and is expected to generate 4,207 million units (MUs) in first year and a cumulative generation of around 96,797 MUs over a period of 25 years.
SJVN was quoting at Rs 39.55, up Rs 0.25, or 0.64 percent.
Uniparts India IPO subscribed 4.14 times on final day of offer
The initial public offering (IPO) of engineering systems and solutions provider Uniparts India was subscribed 4.14 times on December 2, final day of bidding. The public issue received bids for 4.19 crore equity shares against 1.01 crore shares on the offer.
The portion reserved for the retail investors got subscribed 2.93 times, while the category reserved for high networth individuals (HNIs) received 7.56 times subscription. The quota reserved for qualified institutional buyers was subscribed 3.68 times.
Market at 1 PM
Benchmark indices were trading lower with Nifty below 18700.
The Sensex was down 496.01 points or 0.78% at 62788.18, and the Nifty was down 136.80 points or 0.73% at 18675.70. About 1791 shares have advanced, 1356 shares declined, and 148 shares are unchanged.
Tata Steel Large Trade | 35.56 lakh shares (0.3% equity) worth Rs 39.66 crore change hands at an average of Rs 112.1 per share.
Sharekhan retains 'Buy' rating on Gland Pharma, Price Target of Rs 2260
-Retain 'Buy' rating on the stock with an unchanged Price Target of Rs 2260
-Announced acquisition of 100% of French company Cenexi Group through its wholly-owned subsidiary Gland Pharma International PTE, Singapore
-Acquisition is in line with Gland Pharma’s strategic objective to expand its CDMO offerings in Europe
-Believe the new geographical expansion in Europe should help Gland Pharma to improve its long term growth prospects
-Stock performance will be subject to its consistent improvement in the business performance
Gland Pharma was quoting at Rs 1,728.60, down Rs 23.90, or 1.36 percent on the BSE.
PVR opens first Director’s Cut in Bengaluru
PVR opened first Director’s Cut in Bengaluru, at Forum Rex Walk at Brigade Road.
The new Director’s Cut seats a total of 243 audiences in its five super luxurious thematic auditoriums uniquely designed to offer an unparalleled experience.
Piramal Enterprises to raise Rs 104 crore via NCDs
Piramal Enterprises has received board approval for allotment of 1000 non-convertible debentures with a face value of Rs 10 lakh, at a further issue price of Rs 10,39,670 per debenture.
With this, the company will raise Rs 103.967 crore on private placement basis.
Piramal Enterprises was quoting at Rs 855.00, down Rs 8.10, or 0.94 percent on the BSE.
Sharekhan remains positive on the automobile sector
-Remain positive on the automobile sector despite near-term challenges, rising inflation, and semiconductor chip shortage
-The passenger segment, both for two-wheeler and four-wheelers (4Ws), is expected to remain strong
-Rural demand is expected to drive sales of tractors and farm equipment
-Demand in urban regions continues to remain buoyant
-Expect a sequential improvement in M&HCV sales to continue
-Expect recovery in the CV segment to continue over the next few years
Kotak Mahindra Bank raises Rs 1,500 crore via NCDs
Kotak Mahindra Bank has allotted 15,000 long term fully paid up non-convertible bonds with a face value of Rs 10 lakh each, on private placement basis.
The coupon rate is 7.63% per annum and the tenor is 7 years from date of allotment.
Kotak Mahindra Bank was quoting at Rs 1,924.15, down Rs 10, or 0.52 percent on the BSE.
BSE Fast Moving Consumer Goods index shed 0.6 percent dragged by the KRBL, Patanjali Foods, Hindustan Unilever
Market at 12 PM
The Sensex was down 560.43 points or 0.89% at 62723.76, and the Nifty was down 162.90 points or 0.87% at 18649.60. About 1713 shares have advanced, 1390 shares declined, and 153 shares are unchanged.
Zydus Lifesciences receives final approval from USFDA for Estradiol Transdermal System
Zydus Lifesciences has received final approval from the United States Food and Drug Administration (USFDA) to market Estradiol Transdermal System USP, 0.025 mg/day, 0.0375 mg/day, 0.05 mg/day, 0.075 mg/day, and 0.1 mg/day.
Estradiol is indicated to treat moderate to severe symptoms of menopause, as per the company's exchange filing.
